Growers Taking Charge

There are two rules of customer service. 1. The customer is always right. 2. If the customer is wrong, see rule number one. With all the challenges and pressures of energy prices, low margins, a rough economy and overproduction, growers need to differentiate themselves to get the attention of retailers. Some of the largest growers in the country are taking charge of their situations and the economic landscape to create new programs and products that help them maintain their own destinies.

"We must make it easier for the retail customer, even if it is harder for our growers," says Charles Masloski of Hiebert Greenhouses (No. 72). "The plants must look healthier longer at retail stores, even if you are not doing pay by scan. Customers do not put man hours into lawn and garden as in the past, and they want their margins to be higher?"

Keeping Customers Happy

There are plenty of ways growers have worked to improve quality for their customers, including quicker or better product transport and availabilites tracking and innovative packaging and merchandising.

Of the Top 100 Growers who responded to our survey, 82 percent serve their customers through their own trucking fleet, and more than a quarter use GPS and logistics/tracking software to keep track of shipments. Cross-docking facilities, where goods enter through receiving docks, are sorted and then sent out through shipping docks, are utilized by 38 percent of growers.

Paul Ecke Ranch (No. 5) reports major advances in Web-based tracking technologies (see "Ecke’s Gone Techie," page 14). Improved routing and load efficiencies help get product to market quicker, and are also credited by our Top 100 as ways to deal with higher fuel costs. Tagawa Greenhouses (No. 25t) and Nash Greenhouses (No. 98) cite Lean Replenishment or Just In Time techniques to meet customer needs. Christopher Bergen says his operation "lives and dies by our Vendor Scorecard," which gives the operation the ability to flow product at the right rate.

In-Store Services

On the packaging and merchandising side, 84 percent of Top 100 growers say they provide point-of-purchase and marketing materials to retail customers. Both Wenke Greenhouses (No. 29) and Kurt Weiss Greenhouses (No. 2) say innovative packaging gives them an edge. Retail-ready packaging helps growers stand out from the pack.

"We grow over 275 gerbera varieties that we offer our wholesalers in a wide assortment of boxes," says Sue Nagelmann, sales manager of fresh cut flower grower Ever-Bloom Inc. (No. 97). "We often pack them ‘retail ready,’ so there is minimal handling and less damaged flowers for our customers." Seventy-seven percent of survey respondents say they deliver a branded product to their customers, and 42 percent say they provide in-store maintenance to their retail customers. Seven growers report they offer online availability updates.

Armstrong Growers (82), which supplies not only its own retail stores but supermarket chains, florists, brokers, warehouse clubs and other independent garden centers, sells product that is geared toward high-end retail, carving out a unique niche.

How To Best Serve The Customer?

How do growers make themselves stand out from the pack in the retailer’s eye? Growers share how they have adapted to serve their customers better.

While making money is still the top concern for most growers today, 26 percent of our survey respondents say the top force affecting their businesses is labor availability. Forty percent say their businesses have been affected by labor shortages. Three-quarters say they’ve incorporated more automation to make up for labor shortages.

"Labor will continue to be in short supply and that is why we all need to continue to invest in labor-saving technologies," says Steve Rinehart, COO of the Paul Ecke Ranch. Art Van Wingerden, COO of Metrolina Greenhouses (6), agrees. "Labor will

get much tighter, so we think the answer is to automate as much as possible." Sixty percent of growers surveyed say they have implemented lean production techniques to keep up with production.

Growers also say they’ve increased wages (44 percent) and used labor placement services (19 percent) in response to labor shortages. Thirty percent say they just work harder to keep up with the workload and two operations have cut back production.

Labor shortages aren’t limited to production workers. Bergen’s Greenhouses (54) in Minnesota also reports shortages of truck drivers for the spring season.

Relying On The Government

Growers are depending on the government to put together a reliable guestworker program. "Why can’t our government adopt a guestworker program that works?" asks Todd Johnson, president of Dallas Johnson Greenhouses (24). "Because what they have now is a joke."

"The immigration brouhaha is of great concern, and the bigoted, vitriolic rantings of Lou Dobbs need to be taken off the airwaves," says Leonard Van Wingerden of Grower Direct Farms (90).

"It’s of utmost importance that we continue to allow documented legal workers to come into our country to do the jobs that spoiled Americans won’t do," says Bob Barnitz, president and CEO of Bob’s Market and Greenhouses (92).

The largest greenhouses in the country take care to train the employees they have. More than half (53 percent) of growers offer their employees the opportunity to attend sessions at trade shows and conferences. University and Extension education are available to employees at 40 percent of the Top 100 Growers. Ever-Bloom Inc. also offers incentives for employees to attend English As A Second Language classes and receive the certificate of attendance.

Dealing With The Energy Crunch

Fourteen percent of our survey respondents say fuel and energy costs are the number one force affecting their businesses. How have they dealt with increasing costs?

"In the greenhouse, we have installed more curtains. We also consolidate crops into one greenhouse before turning another one on and move them later if necessary. We are trying to improve efficiency for deliveries. We are also trying to pass on these added costs to our customers."- Shawn Koepnick, Henry Mast/Masterpiece Flower Co., No. 63

"Since the oil embargo of 1973, we have invested heavily in energy conservation. This includes heat curtains, heated floors, high-efficiency boilers and burners, environmental computer controls, purchasing energy futures three years in advance and many more."- Bill Swanekamp, Kube Pak, No. 86

In this year’s survey, we asked about sustainable production. The most popular products used by growers that would be considered environmentally friendly are energy curtains (83 percent), IPM program/biologicals (63 percent) and paper/plastic recycling (60 percent). When asked why they use sustainable products/processes, the most popular answer was personal responsibility, chosen by 77 percent of respondents. Forty percent say they’re going sustainable in response to a growing consumer trend, and 30 percent say they made the change because of demand from a retailer. "Sustainable" clearly does not mean "organic" to Top 100 Growers though, as 75 percent of respondents say they do not grow organic products. Fourteen percent say they do grow organic products and 11 percent are considering it.

But even with such a large number of producers adopting sustainable practices in one form or another, their attitudes toward the relative importance of these practices vary. The majority of survey respondents (45 percent) say sustainability is somewhat important to them, but 24 percent say it’s not important at all.

"We have always and will continue to do what is best for the environment," says Ann Thompson of potted foliage grower Delray Plants (14). "Sustainability has been important to us for 20 years, not just today." Delray Plants is actively seeking a sustainability certification, she adds.

While Bergen’s Greenhouses is also applying for a certification, and uses a wood-burning boiler and rice hulls instead of perlite in media, sustainability isn’t the biggest business concern. "More important is our ability to sustain being in business while operating on slim margins," says Christopher Bergen. "We take necessary steps to remain a low-cost producer and remain competitive in the market."

"We need to build a more responsible world in the 21st century so we have something worthwhile to pass on to our children," says Ric Stevens of Nash Greenhouses. "We need to be accountable for our actions."

"I’m concerned about the ‘top-down’ push for this aspect of my business, rather than a ‘bottom-up,’" says Leonard Van Wingerden of Grower Direct Farms. "This ‘green thing’ may make people feel good, but it does not necessarily translate into actually doing good."

Overall, 39 percent of our survey respondents say they will be seeking a sustainability certification, 24 percent say they are actively seeking certification and one grower, B&H Flowers, is already certified to the VeriFlora standard. Several respondents say they have or will move to more environmentally friendly processes before they’re legally forced to through regulation.

"Although the consumer does not put too much pressure on floral products yet (compared to produce), either they or the government will demand it in the near future," says Sue Nagelmann of Ever-Bloom Inc.

Growers shared plenty of opinions on the sustainability movement. See more of them at our Web site, www.greenhousegrower.com.

Regarding business challenges of 2008, many growers are no longer relying on suppliers or customers to help them provide the best service and product to the market. Growers are now taking on more complex shipping, sophisticated production and product packaging and marketing to counter labor shortages and poor economic conditions, all while upholding rule number one of customer service – the customer is always right.

A new educational video that provides information on the horticultural industry’s essential role in bee and pollinator stewardship is one result of industry collaboration by the Horticultural Research Institute, AmericanHort, Society of American Florists and the American Floral Endowment. “Protecting Bees & Pollinators: What Horticulture Needs to Know,” narrates the current state of bee and pollinator health, provides information on factors that impact pollinators and the environment and underscores the beneficial role horticulture plays in providing healthy pollinator ecosystems.

Vegetable breeding companies will come together this August to host the Summer Vegetable Trials in California. Like the long-standing California Spring Trials that are held annually in California, attendees will have the opportunity to visit breeding companies' trial sites in seven locations throughout the state, from August 20-21, 2015. National Garden Bureau (NGB), the non-profit organization promoting gardening on behalf of the horticulture industry, is organizing and publicizing this event on behalf of its members.

DNA Green Group and Riknplant have finalized DNA Green Group's acquisition of Rijnplant, meaning that the breeding and propagation activities in pot and cut anthurium, bougainvillea and heliconia will transfer to DNA Green Group.

Is your environmentally controlled greenhouse production area 500,000 square feet or larger? If so, we want to hear from you. Please take our Top 100 Growers survey to help us get an accurate picture of our industry from the perspective of our largest operations.

The panel of experts at Greenhouse Grower’s 2014 Top 100 Growers Breakfast offered insight on how the industry is addressing the public scrutiny on neonicotinoids, research that still needs to be done and what growers can do to promote their operations’ responsible practices.

Determined to find out firsthand what a ban on neonicotinoid pesticides would mean for growers, Bell Nursery CEO Gary Mangum challenged his team to grow without them. Read to find out about the lessons he learned.

Greenhouse Grower’s Top 100 Growers Breakfast has become a great annual event during OFA Short Course. We get together with representatives from the country’s largest greenhouse operations to talk about trends and developments in different areas of the business. And while the meeting is targeted for the Top 100, there are invariably interesting lessons that apply to growers across the board. This year’s breakfast featured a panel discussion on “The Even-Higher-Tech Future Of The Top 100.” (You can read about some of the highlights from the event on page 32.) Our panelists included Gary Falkenstein, president and CEO of the new online live goods broker, ePlantSource; Paul Pilon, owner of Perennial Solutions Consulting; and Charles Grinnell, COO of Harvest Automation (whose plant-moving robots were one of the highlights on the trade show floor at Short Course this year). They shared their opinions on what exciting new developments growers may have […]

As part of Greenhouse Grower’s 30th anniversary celebration, we’ve been taking a look at the current state of various segments of our industry in 2013. But there’s also value in looking ahead at — and preparing for — the next 10, 20 or 30 years. “The Even-Higher-Tech Future Of The Top 100 Grower” was the theme for Greenhouse Grower’s annual Top 100 Growers Breakfast, held during OFA Short Course. The Top 100 program was sponsored by BASF. The breakfast featured a panel discussion with experts in web technology, robotics and production: Gary Falkenstein, president and CEO of ePlantSource, Charles Grinnell, COO of Harvest Automation and Paul Pilon, owner of Perennial Solutions Consulting. Each shared his vision of the future and identified readily available technologies and opportunites that growers should be exploring for their business today. Where are the Top 100 Growers on the technology curve? Falkenstein: On the technology side, […]

Do you grow foliage and houseplants? If not, it might be time to consider it. In a recent Today’s Garden Center magazine survey, of those garden retailers who carry houseplants, 54.3 percent report an increase in sales in 2013. Hermann Engelmann Greenhouses reports good news, as well, with a 5 percent increase within the foliage segment in the past year. So how does the operation plan to keep the good times rolling? The formula for this grower includes marketing directly to the consumer through in-store materials, a loaded website and an active social media presence. But the message being broadcast through all these media is the same — to inspire the customer to create home décor designs and to educate with plant care tips that will turn timid gardeners into experts. “We want to transition our product from a commodity item to a home décor item,” says Erin Leonard, director […]

Metrolina Greenhouses, based in Huntersville, N.C., has entered into a purchase agreement to buy the assets of Stacy’s Greenhouses, Inc. pending U.S. bankruptcy court approval. “As part of Metrolina’s continuing expansion, the proposed asset acquisition of Stacy’s will improve our business growth as we continue with our 2025 Vision plan,” says Abe VanWingerden, co-CEO of Metrolina Greenhouses. “Stacy’s perennial business is a natural addition to our current product lineup as we continue to provide new and innovative solutions and concepts for our retail partners. “Additionally, by making this asset purchase, we will be able to honor and extend the business legacy of Mr. Stacy as he and my father, Tom VanWingerden, were both pioneers in this industry who worked together on many projects over the years as they both started in their businesses in the early 1970s. Combining the work of these two visionary leaders into one company makes logical sense.” […]

Stacy’s Inc. has filed for Chaper 11 bankruptcy protection in order to facilitate an upcoming sale. “The process is going forward the way we had hoped,” says Stacy’s President Tim Brindley. “The court has approved a working budget to keep everything moving forward through July 26, and we have another hearing soon to approve a budget through August.” With the company going through Chapter 11 proceedings, any sale will be an asset purchase rather than a sale of the company. The business will no longer carry the Stacy’s name. “We have been in negotiations with a potential buyer for several months, and have a signed asset purchase agreement in place,” Brindley says. “Everything has to be approved by the courts and there are a lot of steps that still have to take place, but the goal is to have the sale complete by the end of August. The sale of Stacy’s […]

Rocket Farms has launched a new website to support the brand’s innovative approach that focuses on fun, creativity and interaction with the consumer. Offering a clean, modern look, the new RocketFarms.com offers a wide variety of information on the company and its products, the Rocket Farms Wholesale Center and product inspirations. In an effort to cater to today’s mobile consumers, the new website is compatible for viewing on all media devices, including PC, mobile phones and tablet devices. The website will continue to evolve as additional enhancements and new information are added to appeal to consumers’ changing interests and expand the product interaction portions of the website. The most exciting and original part of the website is Inspirations. An online reference guide for consumers to find fun and unique ideas for selecting and enjoying Rocket Farms products, Inspirations includes recipes, design ideas, inspirational concepts, and more. Visitors can then share […]

As part of Greenhouse Grower’s 30th Anniversary, we reviewed the state of production among the nation’s largest operations. Our 2013 Top 100 Growers Survey, sponsored by Becker Underwood, asked three big questions to get a feel for where they see the biggest developments in greenhouse production. Innovations First, we asked them to identify the most important innovation in the greenhouse industry in the last 30 years. We got a variety of opinions, including integrated pest management, bottom heat and heat curtains, open roof greenhouses, plugs and other growing techniques and computer-based environmental controls. Most commonly cited were breeding improvements, hydroponic production and the big winner, automation and transplanters. “It’s not even close,” one respondent said. “Transplanters are the best innovation we’ve seen. To plant at the speed we do now, we would have to put 30 people on each production line.” Improvements Next, we asked them to tell us […]

It’s not necessarily an indication of a top-to-bottom trend in the horticulture industry, but one thing is clear from the results of the 2013 Greenhouse Grower Top 100 Grower survey: The largest greenhouse operations in the U.S are getting larger. Perhaps it’s a sign of things turning around after several years of a stagnant economy and an evolving customer base. Maybe the greenhouse industry is just continuing a shakeout, with the largest operations absorbing the production and space of growers who are leaving the market. Could be it’s simply the big continuing to get bigger to take advantage of the production efficiencies size can offer big retail customers and the growers’ own bottom lines. It’s likely some combination of all three. Whatever the reason, nearly a third of the growers in Greenhouse Grower’s 2013 Top 100 survey reported growth. Some of them significantly so. Ups And Downs Greenhouse Grower’s annual […]

Rockwell Farms has introduced Rockwell Farms Plant Food, a bottled liquid fertilizer that does not need to be diluted before use. Always looking for ways to help the consumer succeeed, Jason Roseman of Rockwell Farms says the operation is also always looking for ways to get consumers to come back and buy more plants and flowers. “We feel like fertilization is one of those things that can be very confusing,” Roseman says. “Not everyone does it, and not everyone knows what they’re supposed to do.” The solution: Rockwell Farms Plant Food. The formulation is 150 ppm of a 20-10-20 fertilizer and is sold in 24-ounce bottles. Rockwell recommends that one bottle be used to fertilize 1.5- to 3-gallon outdoor plant and flower containers every 21 days. The product’s signage shows a young patio gardener pouring the bottled fertilizer on a windowbox with the tagline, “Just pour on your way out […]